Russia has confirmed it is set to sign a $40 billion economic and trade cooperation agreement with Iraq, a move that could complicate Washington's plans to remove Iraqi leader Saddam Hussein from office.
"This document is being prepared," Oleg Buklemeshev, an adviser to Prime Minister Mikhail Kasyanov, said confirming a Washington Post report on the deal.
"We do not know when it will be signed. When it is ready, it will be signed," he said.
Buklemeshev said the five-year deal to set up cooperation in areas ranging from oil to electric energy and railroads would not violate UN sanctions imposed on Iraq after its 1990 invasion of Kuwait.
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"It is in line with current international agreements," he said.